Olympus 2013 Annual Report Download - page 44

84 OLYMPUS Annual Report 2013 85OLYMPUS Annual Report 2013
12. Allowance for Doubtful Accounts
The non-current allowance for doubtful accounts primarily represents an allowance recorded upon restatement and consolidation of the
Funds as discussed in Note 1 “Summary of signifi cant accounting policies” (a) “Basis of presenting consolidated fi nancial statements.”
Illegitimate payments for fees to external collaborators of ¥7,211 million ($76,713 thousand) were recorded as a non-current receivable
andincluded in non-current other assets on the balance sheet as of March 31, 2012. The Company did not agree to the fees andis seeking
collection of the amounts paid, however, collection of such amounts was determined to be doubtful and a full allowance wasrecorded
against the non-current receivable.
13. Stock Option Plans
(1) March 31, 2012
A summary of information regarding the consolidated subsidiaries’ stock option plans for the year ended March 31, 2012 was as follows:
Consolidated subsidiaries
Qualifi ed benefi ciaries ................................................................................................................................................... 13 directors
2 corporate auditors
144 employees
Class and number of shares for which new subscription rights were offered ................................................................. Common stock 10,844
Date of rights granted ................................................................................................................................................... From August 30, 2005 to July 31, 2008
Period of exercise of rights ............................................................................................................................................ From January 1, 2007 to June 26, 2018
Number of stock options unvested:
As of March 31, 2011 ............................................................................................................................................ —
Granted ................................................................................................................................................................. —
Lapsed .................................................................................................................................................................. —
Vested ................................................................................................................................................................... —
As of March 31, 2012 ............................................................................................................................................ —
Number of stock options vested:
As of March 31, 2011 ............................................................................................................................................ 7,931
Vested ................................................................................................................................................................... —
Exercised .............................................................................................................................................................. —
Lapsed .................................................................................................................................................................. 930
As of March 31, 2012 ............................................................................................................................................ 7,001
For stock options exercised during the year:
Exercise price (yen) ................................................................................................................................................ ¥—
Average price of common stock at the date of exercise (yen) ................................................................................. ¥—
For stock options outstanding at the end of the year:
Exercise price (yen) ................................................................................................................................................ ¥26,067
No stock options were exercised for the year ended March 31, 2012.
The total intrinsic value of the stock options was nil as of March 31, 2012.
Conditions for the exercise of stock options are as follows:
Individuals to whom the stock options are granted must continue their service with the Company or its subsidiaries and affi liates in the state
of being employed or entrusted until the stock options become exercisable.
(2) March 31, 2013
There were no stock options outstanding as of March 31, 2013, because the subsidiary for which stock options to directors had vested was
sold and deconsolidated during the year ended March 31, 2013. No options that had already vested as of April 1, 2012 were exercised or
lapsed before the sale of the subsidiary.
10. Notes and Accounts Payable
Notes and accounts payable as of March 31, 2012 and 2013 consisted of the following:
Millions of yen
Thousands of
U.S. dollars
2012 2013 2013
Unconsolidated subsidiaries and affi liates ............................................................................................. ¥ 197 ¥ 31 $ 330
Trade .................................................................................................................................................... 75,133 42,241 449,372
Total ..................................................................................................................................................... ¥75,330 ¥42,272 $449,702
11. Retirement Benefi t Plans
Employees of the Company and consolidated subsidiaries have defi ned funded pension plans and unfunded retirement allowance plans.
The Company and certain consolidated subsidiaries have defi ned contribution pension plans.
Directors and corporate auditors of several domestic consolidated subsidiaries have unfunded retirement allowance plans.
The amounts of pension payments and retirement allowances are generally determined on the basis of length of service and basic
salary at the time of termination of service.
It is the Company’s policy to fund amounts required to maintain suffi cient plan assets to provide for accrued benefi ts. The plan assets
consist principally of interest-bearing bonds and listed equity securities.
Provision for retirement benefi t recognized in the consolidated balance sheets as of March 31, 2012 and 2013 consisted of the following:
Millions of yen
Thousands of
U.S. dollars
2012 2013 2013
Projected benefi t obligation ................................................................................................................... ¥ 139,266 ¥ 157,826 $ 1,679,000
Fair value of plan assets ........................................................................................................................ (133,032) (152,476) (1,622,085)
Unrecognized prior service costs .......................................................................................................... 6,791 4,796 51,021
Unrecognized actuarial loss .................................................................................................................. (12,551) (2,897) (30,819)
Prepaid pension costs .......................................................................................................................... 23,448 20,345 216,436
Retirement benefi ts for employees ........................................................................................................ 23,922 27,594 293,553
Retirement benefi t for directors and corporate auditors ......................................................................... 140 142 1,511
Total provision for retirement benefi t ...................................................................................................... ¥ 24,062 ¥ 27,736 $ 295,064
Retirement benefi t expenses for employees included in the consolidated statements of operations for the years ended March 31, 2011,
2012 and 2013 consisted of the following:
Millions of yen
Thousands of
U.S. dollars
2011 2012 2013 2013
Service costs ........................................................................................................... ¥ 6,588 ¥ 7,402 ¥ 8,965 $ 95,372
Interest cost on projected benefi t obligation ............................................................. 4,024 3,891 4,051 43,096
Expected return on plan assets ............................................................................... (5,488) (5,466) (5,744) (61,106)
Amortization of actuarial loss ................................................................................... 3,950 6,427 (1,889) (20,096)
Amortization of prior service costs ........................................................................... (1,070) (1,581) 8,255 87,819
Retirement benefi ts expenses .................................................................................. 8,004 10,673 13,638 145,085
Payment for defi ned contribution plans .................................................................... 268 526 543 5,777
Total ........................................................................................................................ ¥ 8,272 ¥11,199 ¥14,181 $150,862
The discount rates used by the Company were mainly 2.0% for the years ended March 31, 2011, 2012 and 2013. The rate of expected
return on plan assets used by the Company is mainly 4.0% for the years ended March 31, 2011, 2012 and 2013. The estimated amount of
all retirement benefi ts to be paid at the future retirement date is allocated equally to each period over the estimated years of total service.
Extra severance payments for voluntary retirement of ¥1,336 million ($14,213 thousand) for the year ended March 31, 2013 are not
included in the above table (see Note 25 “Extra severance payments for voluntary retirement”).